World energy markets have been shaken up by the Russian invasion of Ukraine. Dependencies regarding energy from Russia are being reduced. This is having a profound effect on the uranium market. Now, as a result, uranium prices are at their highest level in about eleven years. Western utilities are also likely to be willing to pay premiums for material that comes from friendly, low-risk areas. In the global nuclear fuel market, Russia provided about 15 percent of the world's supply of primary uranium mines. Overall, without Russia, the uranium deficit is now increasing. Although there have been several restarts of uranium mines in recent weeks (McArthur River, Langer Heinrich), this is unlikely to be enough to meet demand in the longer term.
Canaccord Genuity Capital Markets thus assumes a long-term price of $75 per pound of uranium. Growing concerns about supply security and rising demand, as well as sanctions against Russia, have led to strong momentum in the uranium market that has exceeded many expectations. This has driven up not only the price of uranium, but also the price of many uranium stocks. Yields have increased. In this context, the intention of the Western world and its allies to reduce dependence on Russia will also have a long-term impact. And it's not just about primary mine supply, but also exports of enrichment services, enriched uranium products and prefabricated fuel. As governments reassess energy supplies, investors should keep an eye on companies with uranium projects.
Labrador Uranium - https://www.youtube.com/watch?v=S5hRQCfVWnU - focuses on uranium and vanadium in Labrador and Newfoundland.
Uranium Energy - https://www.youtube.com/watch?v=6t0hT6NNKCg - has physical uranium in storage in the U.S. as well as two uranium projects ready to produce and seven licensed ISR uranium products.
Current corporate information and press releases from Labrador Uranium (- https://www.resource-capital.ch/en/companies/labrador-uranium-inc/ -) and Uranium Energy (- https://www.resource-capital.ch/en/companies/uranium-energy-corp/ -).
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